tv Bloomberg Technology Bloomberg May 16, 2017 5:00pm-6:01pm EDT
information shared by president trump with russian officials , andweek was appropriate the safety of a key intelligence source was never compromised. mcmaster initially dismissed the story as false. the new york times, citing a current and former american official, says the class of fight intelligence was divided by israel -- the classified intelligence was divided by israel. president trump is scheduled to travel to israel next week. mitch mcconnell recommends merrick garland as fbi director after mcconnell played a part in blocking president obama's attempt to confirm garland to the supreme court. mcconnell says the gop could use less drama at the white house. president trump welcomed the turkish president to the white house. countries, hetwo says, must battle the islamic state together.
says he noticed cooperation at nato and the group of 20. powered by 2600 journalists and analysts in over 120 countries, from washington, i'm alisa parenti. bloomberg technology is next. ♪ emily: this is "bloomberg technology." cybersecurity stocks jump in the wake of the global wannacry hack attack. the next act. a former ceo joins us to talk about his new fund and where he is placing his bets in a bloomberg exclusive. apple hits refresh with a new .ine of macbooks
first to the lead, we take a look at the evolving threat landscape in cyberspace. president trump discussed highly classified intelligence in a meeting with russian officials last week. the national security adviser says the information the president shared was appropriate , and based on open-source reporting. take a listen to general h.r. mcmaster defending president trump. >> what the president shared was appropriate. the story combined what was leaked with other information, sources anded about methods. i wanted to make clear with everybody that the president in no way compromised any sources or methods in the course of the conversation. emily: this is on the heels of a global cyber attack that is causing the intelligence community to work overtime. what are the implications of both events for the intelligence community?
mike joins us from washington. this is some the heels of the president abruptly firing the head of the fbi. i'm curious, is trump having an impact on what is going on in's -- in cyber world? are we more or less vulnerable to a cyber attack? emboldeningt is attackers. the new administration, a lot of people thought president trump would be more aggressive in cyberspace. we had a couple draft orders of the executive, the cyber executive order that showed a different task. when the order came out last week, it was more of the same, and if anything, that seems to have emboldened the attackers. we had not just the massive rent somewhere attack that spread -- ransomware attack that spread across the globe, but a group said they might decide to do a dump a month, which means they
would release a new set of tools that the u.s. uses in cyberspace every month, which could be devastating. emily: talking about this rent somewhere attack, what new information -- this ransomware attack, is it contained? do we know the origins? waxed -- >> on some sort of the first wave of attacks has been contained. people are looking for new versions, and they have spotted a wannacry 2.0 that behaves in much the same way. where attention is focused is who did this? there is some reporting that it may be linked to north korea. if so, this becomes a state operation. a couple things might affirm that diagnosis. the timing, the attack was
released around the same time north korea did a new missile launch. some of the things that might count against it is, we know the ware has only netted about this is a bitcoin. nationstate trying to fill its itfers because it's such -- suffered sanctions, that is not effective. emily: microsoft is blaming the u.s. government. the government is pointing fingers at microsoft and other companies. who is to blame, as for how it got out of control? >> microsoft is not going to come out of this looking good. there was a patch issued when the initial vulnerability was brokers. the shadow everybody knows that not everyone does catches the way microsoft would like them to. there is a question, whether microsoft ought to ship their
operating systems that is safer to begin with. they might rethink the process. however you look at it, microsoft is not looking good. is it the intelligence agencies, or is there some moved to look at the way that these vulnerabilities were first developed i the nsa, that then, insider hackd an that allowed the information to be released? this is the way nationstates nationstates work. china and russia do this. i'm not sure if we should point the blame at the nsa. mike riley d.c., covering cybersecurity, thanks for the update. as a whole rallied on the news of the ransomware attack. able to says they were block many attacks.
experts say they may know who is behind them. symantec's ceo. you were nodding as mike was speaking. your leaders believe north korea was behind it? >> we have produced evidence that shows the people who were involved in attacks were linked to north korea. some fragments of the code are present in this attack. that doesn't mean north korea did it. it means there were fingerprints from the same time to malware that was used in some of the attacks, like the gentleman before me mentioned. i think the thing that would indicate that that would not be the case is the size of the ransom request does not track to the size of the ransom requests that that usually -- that group usually requests. they were linked to an attack in bangladesh. request is higher than 300 u.s. dollars in bitcoin . that request doesn't help, but you never know.
i think what may be another case that is here is that some smaller group got a hold of the nsa vulnerability linked -- leaked by shadow brokers and wrote an amateur piece of malware that got out of control. great,som request is not so a few theories are being worked. it is not time to, law-enforcement is all a -- all over this. the other point the gentleman made, microsoft, are they culpable for this? that is something we should talk about. i think microsoft has come a long way in recent years in hardening their operating system and their patches. this is about vulnerability, and vulnerability comes, people become aware of vulnerabilities and they catch them. this is about i.t. and consumers being very quick to adopt the latest patches, whether it be an apple product, a google product, a microsoft product.
you say you blocked 22 million infection attempts. how many did you catch? >> we had a small number of customers report that they have infection, a really small number , in hundreds of thousands of enterprises that run our products. our products were blocking this long ago. we had artificial intelligence a blocked it without any help. they figured it out themselves and stopped it by themselves. that is a step forward in the industry. i think we have situations where other vendors may have been defense there, who have blocks for it but maybe weren't updated . that is how things got out of hand in europe. emily: the u.s. was largely unaffected. why was that? in our view, because the great researchers that got on the problem early and work it found a situation in this malware that would turn it
off and make it go dormant. that was put in place on friday night. by the time people woke up and the propagation got to the u.s., the malware was already dealt with from a dormant's point of view -- a dormance point of view. spending onu expect symantec products to increase as a result? >> definitely. every time there is an event like this, cybersecurity firms fare very well, which is usually an increase in pipeline. we are starting to see that. the future is bright for us. awareness is there. i think we are not the kind of and that gets up and bashes pedicures or the platform vendors. we are here to fight cybercrime. we shared our information with the cyber threat alliance, thing we are a member of that has
network security players in it. we shared that on friday. we are trying to help the industry. we are a good operator and we have a huge investment in this area. emily: what trends are you seeing? is the threat landscape changing as a result of the actions of the trump administration? >> i would say cyber criminals are somewhat emboldened, not just by the trump administration, really, i think emboldened by the effectiveness of the attacks. we heard about england saudi arabia in january that were things in saudi arabia in january that were concerning. there are more consequences in the u.s. cyber criminals are more emboldened. we produced a threat report a couple weeks ago. in there, we reported rent somewhere is on a rise, up 36% -- ransomware is up 30 per -- 36%. average price has gone up to
over $1000 to repair. way of makings a money for criminals, and it is definitely an effective thing on consumers and their digital safety. emily: we will continue to follow the ripple effect of the attacks felt around the world. greg clark, thank you so much. >> thanks. emily: in today's revolving door, twitter cofounder biz the companyoining six years after he left and two months after selling his start up to pinterest. he says he will be focused on company culture and won't be replacing another executive. we spoke to him last october and asked about the challenges at twitter. >> i don't follow the small up send downs. ups and downs. great leadership thinks in terms of
decades, not quarters. i am waiting. jack is, in the grand scheme of things, jack has just gotten the job. he has only had it for a year. that is nothing. emily: shares of twitter jumped following the announcement. bloomberg news is among twitter's video partners. isormer google ventures ceo completing his fundraising for his new investing firm. we will hear from him exclusively about where he is take -- placing his that's next. , 2:00 live on twitter p.m. in san francisco, 5:00 p.m. in new york. this is bloomberg. ♪
investing world. he has raised 100 $50 million for his new fund, called section 32. joining us and it -- in an exclusive interview, he oversaw many startups. great to have you back. >> great to see you. emily: you said we were at peak vc, the market is too crowded. what changed? >> i'm back. thank you. i think we are still at peak vc. i was not happy with the fund i was constituting in terms of the investor rates, so i took a minute to reconstitute it and build a smaller, more focused fund. i think the majority of the companies i will invest in are built around relationships i have built over the last 10 years. andy: if we are at peak vc,
goldman sachs says there is a lot of money to invest, how do you break in? >> hopefully i am in already to some degree. with a smaller font, i have the advantage to be very selective in the company's eye investing, the people i higher. -- the company's eye investing, the people i hire. emily: you don't often see the rules in vc. you are doing this in san diego. you are not just investing in health and biotech, but tech proper, which is competitive. how do you think you can step up? >> i have lived in san diego for years. i exist in the cloud. francisco, thean idea we are limited by geography is crazy. one fund is the best returning he didn'tl time and
live in san francisco. stay tuned on that front. emily: so you don't plan to do it by yourself? >> know, for now maybe but not forever. emily: where will you be placing your bets? >> more readily available in my mind are the things that are excess access -- attention. even health care has become a very trendy area for investment, to overans subject funding. that leaves huge parts of the market available, whether in or otherral tech applications, for example i have been looking at the food chain. interesting. we have been talking a lot about sure you saw, bloomberg did a piece about how it is a juice machine that got a lot of funding and our reporters discovered that you could squeeze out just as much juice
by hand as with the machine itself. was that a mistake? >> i don't think so. we don't know how the company plays out. they have great leadership. they have ample cash available. it is still going. my time in the valley has taught me one thing, that some people, when they see a balloon, they want to pop it. they want to poke at it. so i would say, there might have been too much kicking someone when they are down. ?mily: what about uber lots of pr issues of are the last few months. lots of culture issues, lawsuits. what has gone wrong? between uberels and what is going on at the white house are hard for me not to draw. they are having a bad time. fundamentally, that is due of it -- due to a fundamental lack of leadership. there are a lot of great people there, and i would love to see the company pull out of this, but they are having a bad couple
months. toly: you are comparing them donald trump. >> i said the white house and uber. when it comes to the white house, i think we should be concerned what is going on. at least i am. the first time in my life i have ever felt our institutions are unstable or unpredictable, and i think there is one thing that we as a people should cherish, a little bit of consistency and reliability in our federal government. i think it is a confusing time. emily: what does that mean for luber? for uber? r -- >> you have a company that is transformative, that is in a period of struggle. google faith that, facebook -- google faced that, facebook faced that.
it is available to consumers oliver the place. i don't know how it plays out from here, but i am hopeful. emily: is travis the right person to lead the company? >> i don't think i am the right person to answer that. there. work i haven't been in their offices in a long time. i think the employees of uber are -- [no audio] there. i haven't been in their offices in a long time. market flight predictability, and not unknowns. there are a lot of unknowns in washington and surprises. some of those are not pleasant. news every morning and i think, what crazy thing has happened this morning? anxiety.tes general it is not good. emily: how will that influence the choices you make when running your new fund? >> we will see. i have never been influenced by
washington and policymakers outside of, they set the ground rules of the way the market operates. those have not changed much. the instability in washington is something to keep an eye on. maris, excited to see what you do. thanks for stopping by from the cloud. coming up, instagram is adding another signature snapchat feature. we will bring you the details, next. this is bloomberg. ♪
hackers. the ceo revealed a news to employees monday. the hackers claim to have stolen an unreleased film, identified by outlets as the latest "pirates of the caribbean" movie, and are threatening to distributed online. this is part of an attack affecting to a thousand computers in 150 countries, two weeks after netflix confirmed hackers leaked new episodes of its series "orange is the new black" or for company refused to pay a ransom. instagram is adding a signature snapchat feature, the ability for people to add animal ears and flowers to their selfie. mark zuckerberg says camera tools will be a major strategy this year as a stepping stone to an augmented reality world. over 200 million people use instagram stories per day, compared to snapchat's 60
taxes to put my money into health, education, and infrastructure. that's according to the main opposition parties 128 page manifesto.he says the party has a program for the many, not a few. in paris, the new french threw his weight behind the city's bid for the 2024 summer olympics. he met with a delegation from the international olympics committee. the ioc will decide in september whether paris or los angeles will host. president macri also met with you and secretary-general. he meets tomorrow with the european council president. before announcing the new french -- cabinet. increasing concern in blom after north korea's missile launch last week u.s. officials say it could. travel 2800 miles, easily within the range of the u.s. territory. guam is a key u.s. military hub
in the pacific. former fbi director james comey says president trump asked him to shut down the probe into former national security adviser michael flynn. this is according to "the new york times." some breaking news for you. global news powered by more than 2600 journalists and analysts in countries.20 i'm alisa parenti and this is bloomberg. it is just after 5:30 p.m. here in washington, 7:30 wednesday morning in sydney. we are joined by paul allen. reporter: good morning. looks like a fairly subdued today around the region. asx futures only up by just a single point. keep an eye on bhp this morning, the world's biggest miner. the ceo says the company would consider further sales of the
u.s. shale assets, as suggested by elliott management. meet later today. nikkei futures pointing weaker as we wait on japan machine orders for march. weibo up strongly in the u.s. after first-quarter revenue beat estimates. $.10 will report after the close today. we are expecting to see 40% on quarter growth there. i'm paul allen in sydney. more from "bloomberg technology," next. ♪ emily: this is "bloomberg technology." i'm emily chang. let's get back to our lead, the fallout over claims that
president trump discussed highly classified intelligence in a meeting with the russian foreign minister and ambassador last week. this, paired with news of a massive cyber attack that has swept the globe, has huge implications for the intelligence community. joining us from l.a., nick bilton, special correspondent for "vanity fair."is the author of a new book about the criminal mastermind behind the silk road. in writing this book, you got an up close and personal look at the cyber underworld. we have a situation at the white house changing minute to minute, a potentially warmer relationship with russia. how do you think this is impacting the cyber threat landscape? >> i think the landscape is becoming the new threat landscape. we are entering an era where everything is connected to the internet. as we saw this weekend with the ransomware attack, hospitals can be taken down, power grids, you
name it. we are just starting to see the beginning of this. the terrifying thing is that when these things happen, the government has no idea who would be responsible, how long it will take to solve it, and so forth. we were lucky this weekend there was a simple fix put in place to but in theroblem, reporting of done about hackers and the things that go wrong, there are pretty terrifying there.out it's not just computers, but infrastructure that powers everything we do every day. emily: what do you imagine the impact of president trump and some of the actions are on this landscape? >> i actually don't think president trump understands this threat landscape. i have spoken to people that has , and when heth him was going around to all these media outlets before he came -- became president, it is just over his head. i don't think he necessarily uses computers on a daily basis.
he barely uses a smart phone. these things are literally over his head, and he has not staffed the white house with people who can help solve these problems. he has instead gotten rid of people like james comey who have an understanding of this. we were very lucky this time. i think there will be an instance in the not-too-distant future or some sort of cyber attack will recap take on the the, whether it is financial markets or power grids. speaking of the ransomware attack, the currency of this attack was bitcoin. the perpetrator was asking for a ransom to be paid in bitcoin, which is the currency of the silk road. what do you make of that? no one knows who created bitcoin. it has only been around for a few years.it is supposedly untraceable. with the silk road, it was not completely untraceable. there are people who do money laundering to hide it. bitcoin goes across nationalities, across
currencies, cross borders. it doesn't matter. someone in north korea can tell someone in america they need six bitcoins at $1500 a piece, and there's no way to trades who got it, how i got there, or how it turned into physical cash later on. emily: yearbook talks about the ethics hunt for this guy, a young guy who founded the silk road, which is basically an online marketplace for drugs, guns, poison. what are the lessons to be learned here? you make ties to the tech companies of today. >> i think one of the things that is fascinating is that this he's from austin, texas, he had this very simple idea -- what if you could make a website where you could buy and sell anything using bitcoin? he built it. just in the same way travis and
his team built uber, and sergey brin built google, it's the same thing. a couple years later he's on track to do $1 billion in sales of illegal drugs and guns, and he's cloaked by all these tools that people are now using to --d companies accountable hostage, and require them to send bitcoin to send money. i think what i saw in the reporting is how difficult it was to figure out who this kid was. we had teams of agents from all dea,the government, fbi, secret service, and it took two and a half years. it was a lucky break that got them there. emily: is it a call to action to tech entrepreneurs, whether it airbnb, or snapchat? >> completely. when you think about how reliant
we are on technology today, let's think in five or 10 years when we had driverless cars. do we think a country like north korea has to worry about getting a nuclear bomb over los angeles when they can just make cars crash into each other, or shut down a power grid by using the same technology the u.s. tried to use with iran? when you see the speed with which these technologies go with an idea like the silk road to becoming a multibillion-dollar business, you can see how they can be used nefariously by bad actors. there are a lot of them out there today. emily: one last question since you also wrote a book about twitter.we saw snap shares go off a cliff after earnings . facebook is copying snapchat features unabashedly. is snapchat the next twitter? >> i don't think so, actually. i have spent time with all the ceos from these companies. i have always been incredibly
impressed with evan spiegel and his ability to understand what millennial's want. we have seen mark zuckerberg copy snapchat, and it hasn't worked. it is currently working a little bit with stories on instagram, but i think evan has a lot of tricks up his sleeve. when twitter and facebook went public, both companies shares 24%.i would 12% and not be selling my snapchat sneers if i had them. i think they will be fine for the next two quarters. emily: interesting. author of the new book, and specialfair," correspondent, nick bilton, thank you for joining us. betsy --ver, shares of in shares.he most they jumped as much as 23% in earlier trading, the most since july 2015. the stock is still down about
we've got breaking news. an update to the report from "the new york times," that president trump asked former fbi to finish theomey probe into michael flynn. memo inad this in a february. the white house is now denying the report, and says they never asked, and president trump never asked comey to finish any
investigation into michael flynn. we will continue to follow this story and bring you developments. i want to go now to london, where caroline hyde is standing by. take it away. caroline: great to see you. i'm here with the ceo of transfer wise, one of the largest peer-to-peer transfer companies. helping moving more than one billion pounds per month, they have raised millions in funding to date. thank you for joining us. a key player in the european unicorn space. big investor names. and you are profitable. talk to us about whether profitability was always something you were driving towards. known since weys
hit critical scale that we would. now we are getting to a point where we are moving one billion pounds a month. we have hit stability. however, our goal remains investing for the future and making sure we can have an impact on user base five or 10 years down the road. caroline: do you have to have the pace of growth back slightly, or can it be mutually beneficial? >> i think it can be mutually dip -- beneficial. it is important to make sure on a country by country and quarter by corner basis we have strong numbers. we had to make sure the company has a whole brakes evenly. but making sure the company's sound is important for any business. caroline: has there been pressure from investors to become profitable.
is their wariness about the sustainability business model that model, is there something you have been worried about? >> i do think there was a change in the market one or two years ago, where there was growth changing, but i think there are companies that have proven they have sound financials underlying growth, and i think the switch was pretty small. maybe some companies were going to crazy and calling for attention. caroline: do you think the likes of airbnb and uber are going to crazy -- too crazy? >> they seem like two totally different companies. , we do hear about massive losses. it is hard to compare them. but i do think they are doing well. caroline: is that a european mindset that makes the investor
base a little more cautious, the entrepreneur a little more cautious, therefore looking for profitability faster? how do you think we in london, particularly escalating in fintech, but not in other areas, compared to other areas like silicon valley? >> i think it goes back to the beginnings and how many companies are being started in europe. there's a disk -- there's a difference in the risk type. lets companies being started, so you have less companies that get to scale to growth and maturity. it is part of the different mindset that people will take less risk because failure isn't so tolerated, so they might focus more on becoming profitable sooner. caroline: i see. therefore, this is something that is interesting. profitable, perhaps that
would be lesser if you look at the united states. when you have profitability, are you looking to raise more funding? you are expanding. you just launched in asia. >> we are in a very good position regarding financing, so we are focused on how to make sure we keep growing as quickly as possible. we grew more than 100% last year and we will continue to do that. for us, the question is how we double down on small to medium businesses, how do we look at those expanding into other areas. caroline: talk to us about where you are investing to sustain growth and where you might be expanding into new areas of product? is it all about hiring engineers, or are you in the marketing phase? is it about areas close to transfer of funds and finance change, but not expanding the product suite? >> we are a team of 700, which is quite sizable, but we are hiring across all fronts. angelina is -- engineers, marketers, we need to keep
growing the business. a couple weeks ago we launched singapore.s in we are hiring in the u.s. and london, and mainland europe. we launched a small to bdm business -- small to medium business last year, and we are looking at growing it significantly. there will be some more announcements later this year about adjacent areas. caroline: you are fascinating. , your startupan was bought and brought to the united kingdom. you have a pen saying founded by immigrants, built by immigrants, used by immigrants. how much has brexit affected your business? youruch will it change opinion of growing a business here in the u k? you are committed to the area? >> we are definitely committed
to being in london. london today is the fintech capital of the world. however, we can't not talk about two things. one is access to talent. isry fax -- access important. it becomes harder for foreigners to move to the u.k., especially with the ecosystem here, and as a result jobs can be created elsewhere. the second is passports. unlike the u.s.. >> the u.s. is state-by-state. it is unlikely to survive. for business contingency, we have to look at how we look at customers on the european side. caroline: always wonderful to have you. some big backers behind you.
we look forward to seeing how you continue to grow. thank you. emily, sending it back to you. emily: thank you. i want to get back to the breaking news happening right now in washington. president trump asked the former fbi director to shut down the federal investigation into trump's former national security michael flynn, according -- according to the new york times. senior editorour for global economics. what is your reaction? reporter: it is never safe to go home as a journalist when you are covering this president. it was about this time yesterday that the washington post story hit. today at 5:30, "the new york what," comes out with appears to be a blockbuster story about donald trump asking m coming -- jim comey to
end the michael flynn investigation. it is important that comey conveyed this investigation in a memo. the newspaper sites two people who have seen the memo. obviously, doing something like that raises all kinds of new questions. emily: the times reports that trump told comey "i hope you can as per the," investigation into michael flynn. the white house is saying this is not a truthful account. the president is about to go to europe. what does this mean for him and his tenure? reporter: i think we are a long way away from talking about something happening to his but he is going to be
leaving washington at a time that is going to create a news vacuum in this town. congress will be in session. there will be calls from the democrats for a special counsel for the justice department to investigate this. at a time when there is no fbi director, no permanent or interim choice, and donald trump has suggested he will try to make that choice before he leaves, so the confluence of events, the idea that he has to take an fbi candidate and he's leaving for europe, it couldn't be a more tumultuous time in washington dc. the drumbeat is just going to continue. this does raise -- people are talking about what kind of law this would break. obstruction of justice comes to mind, although that is sometimes hard to prove. of course, the white house is denying it ever happened.
it does sound like something donald trump, the real estate magnate, might say if one of his employees that a traffic terrific -- traffic ticket, but he's president, and you just can't do that. emily: you have been covering washington for a very long time. this seems to be a precedent every second.dent historically, give us some perspective. have we ever seen something like this? reporter: there are some allusions to watergate. washington dc at the time working for "the wall street journal." at its height, it was a daily watching the "new york times," or other papers to see what developments they had. the difference is that was once a day. this president, there a new development seemingly every hour.
the news cycle is much faster. we all know about social media. we all know about how twitter has developed into a newsfeed. in that sense, the pace is unprecedented. there's no sign of it slowing down. just when you think it is safe, it's not. emily: what are the next steps from here? ,o you think republicans will at this point, change their support for this president, or not? reporter: we have been looking for signs of the republican leadership distancing themselves from this president. there really hasn't been any groundswell of abandoning him in significant way. obviously, some people like mitch mcconnell on air today, saying things like they wish there would be less drama, but at a certain point you would think they want to get to the bottom of whether or not this president understands what the
rules are in terms of legal behavior. , unless it canst be unequivocally proven that this story is wrong, congress is going to want to see that memo from jim comey. they will subpoena it. we will see whether the justice department turns it over. emily: of all the developments, let's say in the last seven days, is this by far the worst? is this potentially the most consequential ? reporter: i actually think it is, if it is true. even the diebold in of intelligence gathering is not a legal -- even the diebold gems -- even the divulgence of intelligence gathering is not illegal. this is something you can be indicted for. it takes it to another level of
seriousness we have not seen. we have not independently times,"d the "new york story. no one else has matched it yet. if the story is accurate, a memo does exist, and it is clear, we can then go and find out whether the allegation is true. emily: thank you so much. to recap, what we are covering -- "the new york times," reporting that president trump asked former fbi director comey to end the investigation into michael flynn. that is it today for "bloomberg technology." thank you for watching. ♪
♪ announcer: from our studios in new york city, this is "charlie rose." we begin this evening with north korea's missile launch and the ongoing global cyber attack. on sunday, north korea conducted their seventh missile test this year, describing it as pyongyang's most successful launch yet. agency described them as less capable of carrying a large sized nuclear warhead. they also reported that a pacific based from the u.s. is within reach.